mom and i sold houses together for over 22 years, until she retired in 2015. i have kept on selling houses. for sellers who are moving on, and to buyers who are moving in. real estate is such a part of our daily lives, that it carries over into everything we are. and it is of interest to so many people. so i thought i would start talking. who knows...i may actually find that i have something interesting to say :) www.tkmomteam.com

Tuesday, September 27, 2016

US Housing Market Moving Further into ‘Buy Territory’

According to the latestBeracha, Hardin & Johnson Buy vs. Rent (BH&J) Index,
the U.S. housing market has continued to move deeper into buy
territory, supporting the belief that housing markets across the country
remain a sound investment.
The BH&J Index is a quarterly report that attempts to answer the question:

In today’s housing market, is it better to rent or buy a home?

The index examines the entire US housing market and then isolates 23 major cities for comparison. The researchers “measure
the relationship between purchasing property and building wealth
through a buildup in equity versus renting a comparable property and
investing in a portfolio of stocks and bonds.”
Ken Johnson, Ph.D., Real Estate Economist & Professor at Florida Atlantic University, and one of the index’s authors explains that:

“Housing
prices, in general, continue to slow and when considered in light of
the recent trends in the Buy vs. Rent Index signal that ownership
remains an excellent investment for the majority of Americans.”

While
15 of the 23 metropolitan markets examined moved further into buy
territory since last quarter, Dallas, Denver, and Houston are three of
the major cities that are currently deep into rent territory. In these
three markets, it is estimated that renting will top homeownership 7 out
of 10 times.
Eli Beracha, Ph.D., Assistant Professor in the T&S Hollo School of Real Estate at FIU, believes that, in these three markets, the “strong
odds in favor of renting to create more wealth should begin to have an
impact on the demand for home ownership and from that, impact property
prices in these areas.”
Simply put, home prices in these
areas will begin to return to more normal levels once residents realize
that renting may be a better choice, therefore bringing home
affordability back as well.

Bottom Line

The
majority of the country is strongly in buy territory. Buying a home
makes sense socially and financially. Rents are predicted to increase
substantially in the next year. Protect yourself from rising rents by
locking in your housing cost with a mortgage payment now.To Find Out More About the Study: The
BH&J Index and other FAU real estate activities are sponsored by
Investments Limited of Boca Raton. The BH&J Index is published
quarterly and is available online at http://business.fau.edu/buyvsrent.

Thursday, September 22, 2016

5 Stats That Prove the Real Estate Market Is Getting Stronger

Whenever there is talk about an improving housing market, some
begin to show concern that we may be headed toward another housing
bubble that will be followed by a crash similar to the one we saw last
decade.
Here are five data points that show the housing market
will continue to recover, and that a new housing crisis is not about to
take shape.
1) Mortgage availability is increasing, but is nowhere near the levels we saw in 2004-2006.
A
buyer’s chances of being approved for a mortgage have increased over
the last three years; That’s good news for the market. This is not a
precursor to another challenge, as many experts maintain that it is
still too difficult for many buyers to attain house financing.
As Jonathan Smoke, the Chief Economist of realtor.com, recently explained:

“The
havoc during the last cycle was the result…of speculation fueled by
loose credit. That’s the exact opposite of what we have today.”

2) The Housing Affordability Index,
which measures whether or not a typical family earns enough income to
qualify for a mortgage loan on a typical home, based on the most recent
price and income data. The current index shows that it is more
affordable to buy a home today than at any other time between 1990 and
2008. With median incomes finally beginning to rise, houses should
continue to remain affordable and housing demand should remain strong.
3) Home prices are well within historic norms.
Prices have increased substantially over the last several years;
However, those increases followed the housing crash of 2008 and national
prices are still not back to 2006 levels. If there were no bubble (and
subsequent bust), today’s prices would actually be lower than if they
were measured by historic appreciation levels from 1987-1999.
4) Demand for housing, as measured by new household formations, is growing.
The Urban Land Institute projects that 5.95 million new households will
be formed over the next three years. Even if the homeownership rate
drops to 60%, that would be over 3.5 million new homeowners entering the
market.
5) New home starts are finally beginning to increase. This helps eliminate the number one challenge in the industry – lack of inventory. And it does so in two ways:

Some first time buyers will, in fact, purchase a newly constructed home.

Many current homeowners will move-up (or move-down) to a new construction and then put their current home on the market.

This means that there will be an increase in both new construction and existing home inventories.

Wednesday, September 21, 2016

Ready to Make an Offer? 4 Tips for Success

So you’ve been searching for that perfect house to call a ‘home’
and you finally found one! The price is right, and in such a competitive
market you want to make sure you make a good offer so that you can
guarantee your dream of making this house yours comes true!Freddie Mac covered “4 Tips for Making an Offer” in their latest Executive Perspective. Here are the 4 Tips they covered along with some additional information for your consideration:

1. Understand How Much You Can Afford

“While it's not nearly as fun as house hunting, fully understanding your finances is critical in making an offer.”

This ‘tip’ or ‘step’ really should take place before you start your home search process.
As we’ve mentioned before,
getting pre-approved is one of many steps that will show home sellers
that you are serious about buying, and will allow you to make your offer
with the confidence of knowing that you have already been approved for a
mortgage for that amount. You will also need to know if you are
prepared to make any repairs that may need to be made to the house (ex:
new roof, new furnace).

2. Act Fast

“Even
though there are fewer investors, the inventory of homes for sale is
also low and competition for housing continues to heat up in many parts
of the country.”

According to the latest Existing Home Sales Report,
the inventory of homes for sale is currently at a 4.7-month supply.
This is well below the 6-month supply that is needed for a ‘normal’ market.
Buyer demand has continued to outpace the supply of homes for sale,
causing buyers to compete with each other for their dream home.
Make sure that as soon as you decide that you want to make an offer, you work with your agent to present it as soon as possible.

3. Make a Solid Offer

Freddie Mac offers this advice to help make your offer the strongest it can be:

“Your
strongest offer will be comparable with other sales and listings in the
neighborhood. A licensed real estate agent active in the neighborhoods
you are considering will be instrumental in helping you put in a solid
offer based on their experience and other key considerations such as
recent sales of similar homes, the condition of the house and what you
can afford.”

Consider ways of making your offer stand out! Many buyers write a personal letter to the seller
letting them know how much they would love to be the new homeowners.
Your agent will be able to help you figure out if there are any other
ways your offer could stand above the rest.

4. Be Prepared to Negotiate

“It's
likely that you'll get at least one counteroffer from the sellers so be
prepared. The two things most likely to be negotiated are the selling
price and closing date. Given that, you'll be glad you did your homework
first to understand how much you can afford. Your
agent will also be key in the negotiation process, giving you guidance
on the counteroffer and making sure that the agreed-to contract terms
are met.”

If your offer is approved, Freddie Mac urges you to “always
get an independent home inspection, so you know the true condition of
the home. If the inspection uncovers undisclosed problems or issues, you
can typically re-negotiate the terms or cancel the contract.”

Bottom Line

Whether
buying your first home or your fifth, having a local real estate
professional who is an expert in their market on your side is your best
bet to make sure the process goes smoothly. Let’s get together and see
if we can make your dreams of homeownership a reality!

Tuesday, September 20, 2016

Don’t Underestimate the Importance of Using an Agent When Selling Your Home

When a homeowner decides to sell their house, they obviously want
the best possible price with the least amount of hassles. However, for
the vast majority of sellers, the most important result is to actually
get the home sold.
In order to accomplish all three goals, a
seller should realize the importance of using a real estate
professional. We realize that technology has changed the purchaser’s
behavior during the home buying process. For the past three years, 92%
of all buyers have used the internet in their home search according to
the National Association of Realtors’ most recent Profile of Home Buyers & Sellers.
However, the report also revealed that 95%
percent of buyers that used the internet when searching for a home
purchased their home through either a real estate agent/broker or from a
builder or builder’s agent. Only 2% purchased their home directly from a seller whom the buyer didn’t know.
Buyers
search for a home online, but then depend on an agent to find the
actual home they will buy (53%), to negotiate the terms of the sale
& price (48%), or to help understand the process (60%).
The
plethora of information now available has resulted in an increase in the
percentage of buyers that reach out to real estate professionals to “connect the dots.”
This is obvious, as the percentage of overall buyers who used an agent
to buy their home has steadily increased from 69% in 2001.

Bottom Line

If you are thinking of selling your home, don’t underestimate the role a real estate professional can play in the process.

The Cost of NOT Owning Your Home

Owning a home has great financial benefits. Because of this, more
and more experts are growing concerned about the ramifications of a
falling homeownership rate. Today, let’s look at the financial reasons
why owning a home of your own has been a part of the American Dream for
as long as America has existed.
The outcomes of a falling homeownership rate can be devastating. As explained by ApartmentList.com:

“Our
research indicates that not owning a home has a sizable financial cost,
as renters miss out on low mortgage rates and are hit by higher rents.This
phenomenon may exacerbate inequality in our society, as those wealthy
enough to invest in real estate benefit from lower interest rates,
whereas minorities and younger Americans, hit by rising rents and
student debt, risk being locked out of homeownership.”

What proof exists that owning is financially better than renting?

1. A study published by the Joint Center of Housing Studies at Harvard University shows the financial benefits of homeownership. The study mentions five major financial benefits:

Housing is typically the one leveraged investment available

You're paying for housing whether you own or rent

Owning is usually a form of “forced savings”

There are substantial tax benefits to owning

Owning is a hedge against inflation

2. Studies have shown that homeowners have a net worth that is 45X greater than that of a renter.
3. Just last month, we explained
that a family buying an average priced home this past January could
build more than $46,000 in family wealth over the next five years.
4. Some argue that renting eliminates the cost of taxes and home repairs. Every potential renter must realize that all the expenses the landlord incurs are baked into the rent payment already – along with a profit margin!!

Bottom Line

Owning a home has always been, and will always be better from a financial standpoint than renting.

Wednesday, September 14, 2016

Why Getting Pre-Approved Should Be Your First Step

In many markets across the country, the amount of buyers searching for their dream homes greatly outnumbers
the amount of homes for sale. This has led to a competitive marketplace
where buyers often need to stand out. One way to show you are serious
about buying your dream home is to get pre-qualified or pre-approved for
a mortgage before starting your search.
Even if you are in a
market that is not as competitive, knowing your budget will give you the
confidence of knowing if your dream home is within your reach.Freddie Mac lays out the advantages of pre-approval in the My Home section of their website:

“It’s
highly recommended that you work with your lender to get pre-approved
before you begin house hunting. Pre-approval will tell you how much home
you can afford and can help you move faster, and with greater
confidence, in competitive markets.”

One of the many advantages of
working with a local real estate professional is that many have
relationships with lenders who will be able to help you with this
process. Once you have selected a lender, you will need to fill out
their loan application and provide them with important information
regarding “your credit, debt, work history, down payment and residential history.”Freddie Mac describes the 4 Cs that help determine the amount you will be qualified to borrow:

Capacity: Your current and future ability to make your payments

Capital or cash reserves: The money, savings and investments you have that can be sold quickly for cash

Collateral: The home, or type of home, that you would like to purchase

Credit: Your history of paying bills and other debts on time

Getting
pre-approved is one of many steps that will show home sellers that you
are serious about buying, and it often helps speed up the process once
your offer has been accepted.

Bottom Line

Many potential home buyers overestimate the down payment and credit scores needed
to qualify for a mortgage today. If you are ready and willing to buy,
you may be pleasantly surprised at your ability to do so as well.

Monday, September 12, 2016

Interest Rates Remain at Historic Lows… But for How Long?

The interest rate you pay on your home mortgage has a direct impact
on your monthly payment; The higher the rate, the greater your payment
will be. That is why it is important to look at where the experts
believe rates are headed when deciding to buy now or wait until next
year.
The 30-year fixed mortgage rate has fallen half a percentage
point since the beginning of the year and has remained at or below 3.5%
for the last 11 weeks according to Freddie Mac’s Primary Mortgage Market Survey.
The chart below shows how far rates have fallen this year (on the left), and uses an average of the projections from Freddie Mac, Fannie Mae, the Mortgage Bankers Association and National Association of Realtors (on the right). As you can see, interest rates are projected to increase steadily over the course of the next 12 months.

How Will This Impact Your Mortgage Payment?

Depending
on the amount of the loan that you secure, a half of a percent (.5%)
increase in interest rate can increase your monthly mortgage payment
significantly.
According to CoreLogic’s latest Home Price Index, national home prices have appreciated 6.0% over the last year and are predicted to be 5.4% higher next year.
If
both the predictions of home prices and interest rate increases become a
reality, families will wind up paying considerably more for their next
home.

Bottom Line

Even a small increase
in interest rate can impact your family’s wealth. Let’s get together to
evaluate your ability to purchase your dream home.

Wednesday, September 7, 2016

14,767 Homes Sold Yesterday… Did Yours?

There are some homeowners that have been waiting for months to get a
price they hoped for when they originally listed their house for sale.
The only thing they might want to consider is... If it hasn't sold yet,
maybe it's not priced properly.

After all,14,767 houses sold yesterday, 14,767 will sell today and 14,767 will sell tomorrow.

14,767!

That is the average number of homes that sell each and every day in this country, according to the National Association of Realtors’ (NAR) latest Existing Home Sales Report.
NAR reported that sales are at an annual rate of 5.39 million. Divide
that number by 365 (days in a year) and we can see that, on average,
over 14,767 homes sell every day.
The report from NAR also revealed that there is currently only a 4.7-month supply of inventory available for sale, (6-months inventory is considered ‘historically normal’).
This means
that there are not enough homes available for sale to satisfy the
buyers who are out in the market now in record numbers.

Bottom Line

We
realize that you want to get the fair market value for your home.
However, if it hasn't sold in today's active real estate market, perhaps
you should reconsider your current asking price.

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About Me

i am a mom. and a wife. and a realtor. when i grow up i want to spend all day taking pictures and then spend all night looking at them. in the meantime, i am going to keep selling houses. for sellers who are moving on, and to buyers who are moving in. real estate is such a part of our daily lives, that it carries over into everything we are. and it is of interest to so many people. so i thought i would start talking. who knows...i may actually find that i have something interesting to say :)